Rivian’s promise to revolutionize the auto industry with beautifully designed, zero-emission, adventurous trucks and SUVs almost depends on the company’s ability to deliver actual vehicles to actual customers. And in this respect, Rivian is getting a little better.
The company announced that it produced 4,401 vehicles during the second quarter of 2022, an increase of 72 percent from the previous quarter. It also delivered 4,467 vehicles to customers, an increase of 267 percent from the first quarter. How many of these were R1T electric trucks and how many of their Electric Delivery Vans (EDV) for Amazon, we can’t say – Rivian didn’t deliver any malfunction.
The company hasn’t said when it will announce its second-quarter earnings, but there will likely be a lot of red ink. In the most recent quarter, Rivian reported a net loss of $1.59 billion based on revenue of $95 million.
The company will still need to produce 18,046 vehicles over the next eight months if it is to meet its goal of building 25,000 vehicles this year, or roughly 9,023 vehicles each quarter. This will not be a small task but it certainly falls within the realm of possibility. During the latest earnings call, Rivian said it had more than 90,000 reservations for its R1T and R1S vehicles.
Production news comes as per the media (including the edgeNilay Patel) revealed its first impressions of the upcoming R1S SUV, further refining Rivian’s efforts to become a true company. Unsurprisingly, everyone seems to love it.
But making expertly designed electric cars with impressive software and exhilarating features has never been in question. Building enough of these vehicles to warrant an eye-catching IPO valuation and then getting them into customer aisles is Rivian’s main challenge and has contributed to the impression that the company may have bitten off more than it can chew.
Rivian went public last fall in one of the biggest IPOs ever, but the stock price has fallen nearly 70% since its IPO. The company said it will exit its commercial division of trucks and SUVs in an effort to overcome several hurdles.